Report: US solar installations up 49% in the third quarter

A study released by Wood Mackenzie and the Solar Energy Industries Association on Tuesday showed that the U.S. industry installed new solar capacity of 11.7 gigawatts in the third quarter. This represents a 49% increase.

The report said solar accounted ?for ?58% of all new electricity-generating capacity added to the U.S. grid through the third quarter, with more than 30 GW installed.

The report said that the rise in solar energy was a result of the One Big Beautiful Bill Act, which caused a disruption across the industry. Most of the gains were driven by utility-scale projects completed in the second-quarter.

OBBBA stipulates that projects must begin construction or enter service before the end of 2027 in order to qualify for 30% tax credits and bonuses. These can increase the subsidy even further, causing uncertainty in the solar and storage industries.

However, the pace of solar installations slowed down in the third quarter due to supply chain bottlenecks and industry constraints. Residential segment suffered the greatest impact, with a 4% drop in third quarter compared to last year.

Permitting delays are a major obstacle for new projects. According to estimates from the industry, more than 117 gigawatts worth of solar and energy storage projects remain stuck in the permit process.

The Interior Department's solar red tape is applicable to any project of this nature in the United States. The Interior Department's red tape can hold up projects if they don't yet have final permits, said Sean...

Gallagher said, "They won't be able to come on line unless the Administration changes its policies which are prohibiting or delaying the construction new energy facilities."

The SEIA has lowered its short-term forecast for residential solar in 2025 and 2026 by 2% each. They also added that the availability of solar modules is expected to be tight until next year. (Reporting from Pranav Mathur, Bengaluru. Editing by Alan Barona.)

(source: Reuters)